Oil rose more than 2 percent on Monday to its highest price since mid-October, fueled by supply concerns as violence in the Middle East escalated and by higher hopes that a U.S. budget crisis will be averted.

Traders focused on the growing Israeli-Palestinian conflict. Israel raised the stakes on Monday, saying it was ready for a ground invasion in the Gaza Strip though it preferred a diplomatic solution.

While previous Middle East wars have led to oil embargoes and temporary disruptions to energy supplies, analysts say it is unlikely the confrontation will spill out into a wider conflict in the region, which supplies a third of the world's crude.

United Nations Secretary General Ban Ki-moon was due to arrive in Cairo on Monday to support ceasefire efforts led by Egypt,Visit CNBC for full article